Which act prohibits lenders from discrimination during the lending process?

The Equal Credit Opportunity Act (ECOA) is the correct answer because it specifically addresses discrimination in the lending process. This federal law, enacted in 1974, prohibits lenders from denying credit based on race, color, religion, national origin, sex, marital status, age, or because the applicant receives income from public assistance programs. The aim of the ECOA is to ensure that all consumers have fair access to credit and can obtain loans without facing bias or discriminatory practices.

While the Fair Housing Act is significant in preventing discrimination in housing-related transactions, including the sale or rental of housing, its primary focus is not on the lending process itself. The Truth-in Lending Act is designed to promote informed use of consumer credit by requiring clear disclosure of credit terms, but it does not address discrimination in lending practices. The Consumer Financial Protection Act mainly established the Consumer Financial Protection Bureau (CFPB) to oversee and enforce consumer protection laws but does not specifically focus on discrimination in lending.

Thus, the ECOA is essential for ensuring equitable treatment in credit transactions, making it the appropriate choice for addressing discrimination in the lending process.